Moody’s gives Sharjah certificates A3

Moody's Investors Service said it assigned a provisional A3 rating to the proposed U.S. dollar trust certificates to be issued by Sharjah Sukuk (2) Ltd., a special purpose vehicle established in the Cayman Islands by the Government of Sharjah.

The payment obligations associated with these certificates are direct obligations of the Government of Sharjah.

"The Government of Sharjah's second sukuk offering reflects the Sharjah government's increased focus on market funding, and a re-profiling of the government's debt burden that has resulted in lower financing costs," Moody's sovereign analyst Mathias Angonin said in a news release.

"Moody's A3 government bond rating on Sharjah is primarily supported by the emirate's very strong fiscal and government debt position, which is offset to some degree by the emirate's small scale and volatile growth track record, while the Sharjah government benefits from the emirate's membership in the United Arab Emirates."

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